cody has invested $12,000 total. he has invested $3,000 in stocks, $2,000 in a certificate of deposit, and…

cody has invested $12,000 total. he has invested $3,000 in stocks, $2,000 in a certificate of deposit, and $5,000 in government bonds. cody’s stocks are currently performing poorly. he has purchased $2,000 worth of an automotive company’s stock, and its value has steadily dropped over the last year. he is reluctant to sell the stock because he is worried about how much money he has already invested. which investment practice is cody following? which investment shortcoming has he failed to avoid? which step should cody take to improve his investment portfolio? if cody sold all his stocks and put the total amount in an account with 5% interest, in how many years would his money double? about 14 years about 67 years about 77 years

cody has invested $12,000 total. he has invested $3,000 in stocks, $2,000 in a certificate of deposit, and $5,000 in government bonds. cody’s stocks are currently performing poorly. he has purchased $2,000 worth of an automotive company’s stock, and its value has steadily dropped over the last year. he is reluctant to sell the stock because he is worried about how much money he has already invested. which investment practice is cody following? which investment shortcoming has he failed to avoid? which step should cody take to improve his investment portfolio? if cody sold all his stocks and put the total amount in an account with 5% interest, in how many years would his money double? about 14 years about 67 years about 77 years

Answer

Explanation:

Step1: Recall the rule - of - 72

The rule - of - 72 is used to estimate the number of years required to double an investment at a given annual interest rate. The formula is $n=\frac{72}{r}$, where $n$ is the number of years and $r$ is the annual interest rate percentage.

Step2: Substitute the interest rate

Given $r = 5%$. Substitute $r = 5$ into the formula $n=\frac{72}{r}$. So $n=\frac{72}{5}=14.4\approx14$ years.

Answer:

about 14 years